Traders are taking the US job report as “excellent news” despite the fact that the combined payroll figures present few strong indicators for policymakers, based on Mohamed El-Erian, the president of Queens’ Faculty, Cambridge.

“The underside line for policymakers and most economists, we are going to see this as not containing a lot new info,” El-Erian instructed Bloomberg Tv. However buyers’ present mindset is that “excellent news is sweet information; unhealthy information is sweet information,” he mentioned.

Friday’s report confirmed that the US unemployment fee climbed to a two-year excessive in February and wage development slowed whilst payrolls continued to develop at a strong tempo, pointing to a cooler but resilient labor market. Inventory futures jumped following the report, whereas bond merchants totally priced in an interest-rate minimize by the Federal Reserve at a coverage assembly in June.

“That is an ambiguous report,” and “folks will see what they need to see on this report,” mentioned El-Erian, a Bloomberg Opinion columnist and former Pimco CEO. “You’ve a good greater separation between economists telling you issues are unsure and the market who sees issues as all optimistic.”

Nonfarm payrolls superior 275,000 final month following a mixed 167,000 downward revision to the prior two months, a Bureau of Labor Statistics report confirmed Friday. The unemployment fee rose to three.9%.

Whereas the report was combined relative to market exceptions, it nonetheless means that the US is outperforming most different main economies, mentioned El-Erian. He identified that Germany, the UK and Japan all slipped into technical recessions, whereas China’s economic system is struggling.

The message is: “US financial exceptionalism,” he mentioned. “The US is simply distinctive.”